Estate planning documents are meant primarily to address a person’s last wishes. These documents, however, must be drawn up when a person is healthy and cognizant. Though you will work with an attorney to establish the intricacies of your customized estate planning package, it is essential to partner with an experienced financial advisor who can help you identify and answer financial questions and concerns and determine the best ways to distribute your assets and protect your decisions.
1. Last Will and Testament
The last will and testament is often the document that gets the financial and estate planning rolling. This document contains details about how you want your assets distributed after your death and also names the following:
- Executor of the will
- Names of heirs
- Trustee for assets
- Guardians for minor children
- Specific bequests
A financial advisor will aid you in determining where your assets should be placed and how they are best parceled out so you feel comfortable with all your financial decisions.
2. Living Trust
Living trusts come in one of two forms – revocable or irrevocable. A revocable living trust is the most common form of this estate planning staple, allowing for flexibility within the document and clarity about how the trust’s assets will be taxed.
When you speak with a financial advisor about a living trust, you will learn details about:
- How a living trust allows for the avoidance of probate
- Why it’s important to rely on a trustee
- How assets are distributed immediately
- Maintaining privacy
- Crafting a document that evolves based on changes to your health or finances
3. Healthcare Directive
A healthcare directive is also known as an advanced medical direction. This estate planning form covers medical care at the end of a person’s living, giving instructions to a medical power of attorney. This person is tasked with making medical decisions when you are unable and following your formal wishes and instructions when it comes to matters like organ donation or do not resuscitate (DNR).
A living will is also included in this category and is often referred to as an advance directive or simply existing alongside a last will and testament. Your unique financial circumstances, assets, and future goals for family and heirs will help your financial advisor guide you in determining which estate planning documentation is most appropriate.
4. Power of Attorney
If you are in a position where you cannot speak for yourself – a vegetative state, unconsciousness, terminal illness – the person you have authorized as your power of attorney can make decisions for you. Someone acting on your behalf is an incredibly big role to fill and a power of attorney can apply to everything from private to business matters, medical to financial matters. There are different types of power of attorney documents, including durable, non-durable, limited, general, medical, and springing.
Create an Estate Planning Package in Michigan
At Hollander Lone Maxbauer, our goal is to make the difficult choices in life as easy to manage as possible – and that includes complete estate planning. Schedule a consultation with one of our experienced financial advisors in Southfield, MI, to learn how to prioritize your financial future with all the other important life-and-death decisions you must make.
